06 September 2013

Internationalisation of the RMB: New Starts, Jumps and Tipping Points

SWIFT’s cross-border data helps determine the process of currency internationalisation by determining the pace of internationalisation of the RMB.

China is the world’s second largest economy constituting approximately 10% of the world’s total GDP.  Its current account surplus enables China to play an increasingly important role as a global lender, as well as being a major beneficiary of foreign direct investment, yet China remains a largely domestic financial system with only a partial engagement with the rest of the world.  This could be all set to change as China aspires to transform the renminbi (RMB) into an international currency.  

The paper titled, “The Internationalisation of the RMB: New Starts, Jumps and Tipping Points”, investigates the pace of internationalisation of the RMB by utilising aggregated cross-border data. The data shows recent cross-border activity in London and New York, though concentration remains in Hong Kong, Macau, Singapore and Taipei.  

What constitutes currency internationalisation? How should internationalisation be measured?  The paper addresses these key questions in the currency internationalisation debate.

by Jonathan Batten, Peter Szilagyi

  • Judge Business School; University of Cambridge
  • Monash University

Register for Updates

Enter your email address below for paper and proposal calls, updates and info

Submit a Research Idea

SWIFT Institute Annual Report

The SWIFT Institute is dedicated to fostering research and disseminating knowledge and information about the financial services industry. The Institute funds and publishes independent research and brings together academics and practitioners to inform, debate and learn from each other.